Product Management’s position in the organization is a topic that invites vigorous debate, usually around whether marketing or development should own the function. (Follow the posts, links and comment threads starting at On Product Management for some other perspectives.) While any debate about optimal organization structure can sound a lot like the radio and television sports shows where people argue fiercely over the greatest running back or quarterback of all time (there is no one right answer!), the PM issue merits some consideration.  Of course, the right answer may be, "It depends."

Innovation in management and organizational structure as a means of competing is a central theme for author and consultant Gary Hamel (The Future of Management).  While creating a new function may be more incremental than innovative, I believe the placement of Product Management in the organizational structure can have a profound impact on this group’s contribution.

In prior posts, I’ve made the case for a broad definition of the role and responsibility of the Product Manager.  The Questions for Success underscore the very strategic thinking and holistic view that Product Managers must have to execute their mission.  Unfortunately, if you push this group towards a communications-centric (tactical) marketing group or a process and schedule-oriented development group, you introduce so much "noise" into the PM environment and priorities, that the strategic issues are easily lost.  Thus, a strong case for an independent Product Management organization can be made.

An independent PM function unfettered by the project issues of development or communications-centricity of most/many marketing teams would be free to pursue its broad charter and serve as an integration point for all functions.  As long as the management and individuals in the PM world focus on non-departmental issues, I think this can work.  However, there is a natural tendency of most functions in an organization to collapse into themselves, becoming more pre-occupied with their own inner-workings and issues than their core mission.  The leaders of this independent PM function must be crystal clear on their reason-for-being and relentless in pursuit of their mission.  Anything less and all that has happened is the introduction of another layer of complexity in the business.  No one needs that.

I have observed cases where the PM role/function worked well allied with either marketing or development, but in these situations, the leaders were insightful enough to ensure that the nature and scope of the role was not distorted by functional demands or culture.   Unfortunately, I’m not confident that most marketing or development leaders will be as effective at ensuring PM independence as these particular leaders.

All things equal, there are many potential advantages to separating Product Management out from traditional domains, but of course, success will be a function of leadership effectiveness. .